Casualty (non-federally declared disasters) loss - Tax Deductible?

[CDW2023]

I experienced a loss of $40,000 plus, difference between what the insurance covered and my out of pocket costs to replace, from a severe wind and hailstorm damage last year. Can I deduct my losses from Federal and State (Minnesota) income taxes? Casualty loss was not a federally declared disaster. Thank you.

[xmasbaby0]

Sorry---unless you are in a federally declared disaster area, casualty losses are not deductible on your federal return.

https://ttlc.intuit.com/questions/4482873-which-federal-tax-deductions-have-been-suspended-by-tax-re...

[JohnB5677]

Although there are many losses as the result of Federal & State declared disaster areas, it is not the only loss that can be claimed.

• A casualty occurs when your property is damaged as a result of a disaster such as a storm, fire, car accident, or similar event. 
• A theft occurs when someone steals your property. 
• A loss on deposits occurs when your financial institution becomes insolvent or bankrupt.

IRS Casualty, Disaster and Theft Losses

Losses are deductible in the year you sustain the loss

To Post to TurboTax

Go to Federal

1. Deductions and Credits
2. Scroll down to Other Deductions & Credits
3. Select Casualties and Thefts
4. Did you have anything damaged or stolen? - Yes
5. Description & Date
   1. Property type
   2. Drop down menu with types of disaster losses.
      1. Select a Federal or State disaster area
      2. Final selection None of the above apply.
   3. Continue
6. This completes the posting.